Jasjit Singh Vs Union of India And Others (Punjab and Haryana High Court)
Statutory provisions under Sections 148 and 144B prevail over administrative instructions or circulars: P&H HC
The Punjab and Haryana High Court recently delivered a significant judgment in a batch of writ petitions concerning the issuance of reassessment notices under Section 148 of the Income Tax Act, 1961, post the implementation of the faceless assessment regime. The judgment reiterates the supremacy of statutory provisions over administrative instructions, offering clarity on jurisdictional authority in reassessment cases.
Background of the Case
The petitioners challenged the reassessment notices issued by the Jurisdictional Assessing Officer (JAO) under Section 148, arguing that the introduction of the faceless assessment scheme under Section 144B mandated such notices to be issued by the National Faceless Assessment Centre (NFAC). The primary contention was that these actions violated the amendments introduced through the notification dated March 29, 2022.
The petitioners also questioned the legality of the approvals granted under Section 151 of the Act, asserting that these should align with the faceless assessment mechanism.
Government’s Arguments
The counsel for the Revenue contended that reassessment notices could still be issued by the JAO for specific cases, such as those involving search and seizure. Referring to the Office Memorandum dated February 20, 2023, and a circular issued on January 19, 2024, the Revenue argued that these administrative instructions were issued to ensure efficient tax administration.
